Two major factors influence the price of gems. The
property of the particular gem in question, or the infamous 4-C's, and the
characteristics of the gemstone type, such as the rarity of the gem,
difficulty of producing the gem, and the popular opinion of the value of
the gem. Rarity and perfection of a stone are usually perceived to control
a stone's cost, but these two factors alone only begin to set the price.
the finished stone in a jewelry setting. Availability of the stone is a product
of not only rarity, but political social and economic factors as well. Wars,
labor disputes, taxation, export/import restrictions, monopolization of raw
goods etc. all work to make an otherwise common stone unavailable and therefore
more costly. Perceived value is not a large factor in most colored stones, but
this, combined with the monopolization of diamond rough by DeBeers, is
responsible for 90% of the cost of diamonds. Based on rarity alone, a one carat
diamond of the quality normally used in engagement rings should retail for under
$50 per stone.
on the 4 C's of the Jewelry industry: Color, Cut, Clarity, and Carat weight.
Each of these factors must be evaluated both individually and collectively in
determining the price. Any one of these characteristics may become the primary
factor in determining the stone's price, if that characteristic is reaching an
extreme value. Color or clarity will often be the extreme factor in the price for
many stones. Diamonds best demonstrate the wide range in prices for these two
factors.
| Color | Flawless | Very Very Slightly Included |
Very Slightly Included |
Slightly Included |
Included |
| D | 15,000 | 9,000 | 7,100 | 5,400 | 3,600 |
| F | 9,000 | 7,200 | 6,500 | 4,800 | 3,200 |
| H | 6,250 | 5,750 | 5,200 | 4,300 | 3,000 |
| J | 4,500 | 4,200 | 3,900 | 3,400 | 2,500 |
| L | 3,600 | 3,400 | 3,200 | 2,700 | 2,000 |
"Flawless" down to "Included". Diamonds are usually sold with the color and
clarity specified. Most other stones are given a numerical value for color,
and although the Included to Flawless scale is used, the meanings may vary
depending on the stone type. Although emeralds, rubies, and sapphires may
be graded this way at times, most other stones are not graded by the same
standards except the most valuable specimens. Most stones, other than diamond,
are usually sold with a subjective grade by the seller with a grading scale of
"AAA", "AA", and "A" or a scale of "A", "B", and "C".
| Size in Carats | .25 | .5 | 1 | 2 | 3 | 4 | 5 |
| Price Per Carat | $3,000 | $5,500 | $9,000 | $18,500 | $24,200 | $27,000 | $35,000 |
| Price Per Stone | $750 | $2,750 | $9,000 | $37,000 | $72,600 | $108,000 | $175,000 |
to provide the greatest amount of reflected light possible. The size of the table,
or the flat, top surface of the stone, the depth of the stone, from top to bottom,
and the ratio of the amount of the stone above and below the girdle, or widest
part of the stone, are of primary importance. If the table is too small, not
enough light enters the stone. If the depth is too great or shallow, or the
depth ratio is wrong, the light that enters through the table will be reflected
out the sides or bottom of the stone.